GE Vernova T&D India (522275) Q4 14/15 earnings summary

Executive summary

• FY15 revenue rose 5% YoY to Rs 37,107.2 million; PAT increased to Rs 1,205.7 million, while operating profit and EPS declined.�

• Order backlog increased 26% to Rs 81,288 million; market leadership was retained for a seventh consecutive year amid subdued investment conditions.�

• Selective bidding, project execution, service growth and technology localisation supported performance; FY16 was expected to bring flat or moderate growth.�

Financial highlights

• Net revenue was Rs 37,107.2 million vs Rs 35,235.4 million YoY; gross revenue was Rs 38,891.5 million vs Rs 37,107.8 million.�

• Operating profit before finance cost was Rs 2,427.5 million vs Rs 2,530.0 million; operating margin was 6.5% vs 7.2%.�

• PBT was Rs 1,701.8 million vs Rs 1,774.4 million; PAT was Rs 1,205.7 million vs Rs 1,170.2 million.�

• Basic and diluted EPS was Rs 4.71 vs Rs 4.78; other income declined to Rs 113.8 million from Rs 435.1 million.�

• Proposed dividend remained 90%, or Rs 1.80 per Rs 2 share; FY15 order backlog reached Rs 81,288 million vs Rs 64,622 million.�

Outlook and guidance

• FY16 market conditions were expected to remain challenging, with flat or moderate growth depending on the pace of reforms.�

• Pricing pressure on margins was expected to continue in a low-demand, high-supply environment; the strong order book was expected to help sustain market pressures.�

• Long-term outlook was positive, with potential demand from grid reinforcement, HVDC, renewables integration, GIS, smart grids and 24x7 Power for All.�